INTEGRATED RIVER BASIN OPTIMIZATION: MODELING ECONOMIC AND HYDROLOGIC INTERDEPENDENCE'

This paper presents an integrated optimal control model that optimizes economic performance of reservoir manage- ment in watersheds in which there are significant economic and hydrologic interdependencies. The model is solved using the Gener- al Algebraic Modeling System (GAMS). Results show that applica- tion of this model to New Mexico's Rio Chama basin can increase total system benefits over historical benefits by exploiting comple- mentarities between hydroelectricity production, instream recre- ation, and downstream lake recreation. (KEY TERMS: economics; modeling/statistics; recreation manage- ment; simulation water management; water policy/regulation/ decision making; water resources planning; watershed manage- ment/wildland hydrology.)